Oppenheimer downgraded PLx Pharma ( NASDAQ: PLXP ) to Perform from Outperform after the drug delivery platform company posted a larger than expected loss for Q2 2022 on Friday.
The analysts point out that despite the rollout of the company's revised marketing plan, PLx Pharma ( PLXP ) missed street forecasts for its aspirin product Vazalore, which the management attributed to inflationary pressure.
Despite its advantages in tolerability and efficacy, the macro environment has discouraged customers from paying a premium for the OTC product, Oppenheimer argues.
In reaction, the management plans to streamline the sales & marketing plan with a significant cut to employees in its Cardiovascular Care Specialist team. Additionally, the company has engaged a financial advisor to begin a process to evaluate strategic alternatives formally .
In light of these announcements, Oppenheimer sharply reduces its revenue estimates for the company.
Despite a reduction of estimates for operating expenses, the firm downgrades the stock and removes its price target, noting: "our visibility on PLXP's ability to achieve profitability is sharply reduced."
Wall Street has remained bullish on PLx Pharma ( PLXP ) stock, with an average rating of Buy from analysts, while Seeking Alpha's quant system , which consistently beats the market, rated PLXP as a Hold.
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PLx Pharma downgraded at Oppenheimer after Q2 miss